If you’ve been holding off on selling your house in Roseburg, here are two reasons why today’s mortgage rate trend is good news for sellers!
Maybe you’ve been hesitant to make a move because you felt like mortgage rates were too high. You’re not alone, but today’s mortgage rates have recently been trending downward, which should be exciting news for you.
Mortgage rates have been trickling down since October 2023 when they hit 7.79% (ouch!). They’ve been hovering well below 7% for over a month now (see graph below):
Yeah, I know, they’re not back to the 2-4% range and honestly, they’re most likely not going back to the rates we saw during the ‘unicorn’ years. Interest rates are, however, expected to continue to go down from where they are right now. Dean Baker, Senior Economist at the Center for Economic Research, explains:
“It also appears that mortgage rates are now falling again. They will almost certainly not fall to pandemic lows, although we may soon see rates under 6.0 percent, which would be low by pre-Great Recession standards.”
Here are two reasons why this recent trend, and the expectation it’ll continue, is such good news for sellers in Roseburg OR.
You May Not Feel as locked into Your Current Mortgage Rate
With mortgage rates already well under what they were just a few months ago, you might feel a tad less locked into the current mortgage rate you have on your house. It’s hard giving up that 3.5% mortgage rate and exchanging it for 8% right?
But today’s rates are coming down. When mortgage rates were higher, moving to a new home meant possibly trading in that low rate for one up near 8%, which was causing many would-be sellers to hold off on listing.
Now, with rates dropping, the difference between your current mortgage rate and the new rate you’d be taking on isn’t as big as it was, so it’s much more acceptable. That makes moving more affordable than it was a few months ago as well. As Lance Lambert, Founder of ResiClub, explains:
“We might be at peak “lock-in effect.” Some move-up or lifestyle sellers might be coming to terms with the fact 3% and 4% mortgage rates aren’t returning anytime soon.”
More Buyers Will Be Coming to the Market
And then there’s the flip side of this coin… many sticker-shocked homebuyers postponed their purchase, causing a minor stall in the market. According to data from Bright MLS, the top reason buyers have been waiting to take the plunge into homeownership is high mortgage rates (see graph below):
Lower mortgage rates mean buyers can qualify for more money and potentially save money on their home loans, making the prospect of purchasing a home more attractive and affordable. Now that rates are easing, more buyers are likely to feel they’re ready to jump back into the market and make their move. And more buyers mean more demand for your house.
Bottom Line
If you’ve been waiting to sell because you didn’t want to take on a larger mortgage rate or you thought buyers weren’t out there, the recent decline in mortgage rates may be your sign it’s time to move. When you’re ready, let’s connect.